Dáil Éireann debate -
Tuesday, 1 Jul 2003

Vol. 570 No. 2

Written Answers. - Industrial Development.

Richard Bruton

Question:

166 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the trend in IDA Ireland supported investment flows from overseas in terms of overall capital sums invested; the associated job targets in each of the years since 1997; and the forecast for 2003. [18676/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

In terms of investment trends, the number of greenfield and expansion projects supported by IDA Ireland is a primary indicator. In 1997, IDA Ireland approved 59 greenfield projects and 67 expansion projects. In 2002 the number of projects approved were 31 greenfield and 24 expansion. For 2003 IDA Ireland anticipates a broadly similar outcome to 2002 in terms of greenfield and expansion projects approved.

The number of projects approved by IDA Ireland, excluding the IFSC, in 1997-2002 are as follows:

No. of Projects Approved	1997	1998	1999	2000	2001	2002
Greenfield Projects Approved	59	71	48	69	20	31
Expansion Projects Approved	67	60	44	32	13	24
Total Projects Approved	126	131	92	101	33	55

Details of employment in IDA Ireland client companies in the period 1997-2002 are as follows:

IDA Ireland	1997	1998	1999	2000	2001	2002
No. of Client Companies	1,106	1,165	1,276	1,262	1,158	1,094
Permanent Employment	109,113	117,754	126,127	140,896	136,448	133,246

Significantly, there are currently more people employed in IDA Ireland companies than there were when the number of companies peaked at 1,276 in 1999. This indicates that, while the number of companies has decreased, the employment performance of the existing base of companies has been quite robust. This also reflects the success of IDA Ireland in winning new investments to continually replenish the existing pool of foreign direct investment, FDI, in Ireland.

FDI and associated projects that can be captured for Ireland have to be seen against a backdrop of reduced international investment flows. A decade long trend of uninterrupted growth in inflows of FDI in the world economy came to an end in 2001 when inflows decreased by 50%, the largest decline in more than three decades. According to UNCTAD data, inflows fell from a high of US$1.49 trillion in 2000 to just US$735 billion.

In terms of the capital sums associated with FDI in Ireland, UNCTAD data show that the value of the stock of inward FDI in Ireland was €74.8 billion in 2001. This amounts to 2.8% of the total in the EU and on a per capita basis renders Ireland the country with the second highest stock of FDI in the EU after Belgium/Luxembourg. Significantly, 50% of the stock of FDI in Ireland is of US origin. Since 1999, IDA Ireland is no longer in a position to provide data on trends relating to capital investment by its client companies in Ireland. This is because, in recent years, an increasing number of employment grants have been approved towards the creation of employment and data on corresponding fixed asset investment is not retained on the IDA Ireland's database. IDA Ireland does not set job targets in relation to associated capital sums invested, but instead sets itself targets in relation to new greenfield investments and expansion projects.

Richard Bruton

Question:

167 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the details of the job losses, the jobs created and the overall job levels in companies supported by the industrial development agencies, distinguishing foreign owned from Irish owned companies, in each of the years since 1997; and the forecast for 2003. [18677/03]

Bernard J. Durkan

Question:

177 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of job losses recorded in the past 12 months; the number of replacement jobs created; and if she will make a statement on the matter. [18838/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

I propose to answer Questions Nos. 167 and 177 together.

The overall job figures in firms supported by the industrial development agencies are calculated on the basis of the annual employment survey conducted at year's end, so figures for the first six months of 2003 are not available. The following table shows figures for the period 1997-2002.

Trends in Permanent Full-time Jobs in Agency-assisted Enterprises* 1997-2002

	1997	1998	1999	2000	2001	2002
All Sectors
All Ownership
Job Gains (Full Time)	30,603	32,276	36,042	44,789	30,541	25,607
Job Loss (Full Time)	-14,598	-17,765	-21,496	-20,883	-33,834	-35,093
Permanent Jobs	263,793	278,304	292,850	316,756	313,463	303,977
Foreign
Job Gains (Full Time)	16,185	17,579	19,417	24,684	14,652	11,760
Job Loss (Full Time)	-6,307	-8,481	-10,787	-9,610	-19,517	-17,778
Permanent Jobs	131,588	140,686	149,316	164,390	159,525	153,507
Irish
Job Gains (Full Time)	14,418	14,697	16,625	20,105	15,889	13,847
Job Loss (Full Time)	-8,291	-9,284	-10,709	-11,273	-14,317	-17,315
Permanent Jobs	132,205	137,618	143,534	152,366	153,938	150,470

	1997	1998	1999	2000	2001	2002
Manufacturing
All Ownership
Job Gains (Full Time)	21,659	20,496	21,901	27,058	17,591	15,013
Job Loss (Full Time)	-12,680	-15,387	-17,728	-16,435	-25,691	-24,529
Permanent Jobs	225,304	230,413	234,586	245,209	237,109	227,593
Foreign
Job Gains (Full Time)	10,890	9,978	10,663	15,133	8,071	6,511
Job Loss (Full Time)	-5,421	-7,318	-8,770	-6,924	-14,736	-12,071
Permanent Jobs	109,565	112,225	114,118	122,327	115,662	110,102
Irish
Job Gains (Full Time)	10,769	10,518	11,238	11,925	9,520	8,502
Job Loss (Full Time)	-7,259	-8,069	-8,958	-9,511	-10,955	-12,458
Permanent Jobs	115,739	118,188	120,468	122,882	121,447	117,491
Internationally Traded Services
All Ownership
Job Gains (Full Time)	8,944	11,780	14,141	17,731	12,950	10,594
Job Loss (Full Time)	-1,918	-2,378	-3,768	-4,448	-8,143	-10,564
Permanent Jobs	38,489	47,891	58,264	71,547	76,354	76,384
Foreign
Job Gains (Full Time)	5,295	7,601	8,754	9,551	6,581	5,249
Job Loss (Full Time)	-886	-1,163	-2,017	-2,686	-4,781	-5,707
Permanent Jobs	22,023	28,461	35,198	42,063	43,863	43,405
Irish
Job Gains (Full Time)	3,649	4,179	5,387	8,180	6,369	5,345
Job Loss (Full Time)	-1,032	-1,215	-1,751	-1,762	-3,362	-4,857
Permanent Jobs	16,466	19,430	23,066	29,484	32,491	32,979

* Refers to companies under the remit of IDA Ireland, Enterprise Ireland, Shannon Development and Údarás na Gaeltachta.

The table shows that at an aggregate level, Irish and foreign-owned companies together, job gains surpassed job losses for all years from 1997 to 2000 bringing full-time jobs to a high of 316,756. In 2001 job losses of 33,834 exceeded job gains of 30,541, leading to a reduction in overall employment levels and this trend continued in 2002. Total full-time jobs in agency assisted companies stood at 304,000 at the end of 2002. Figures for 2003 are not yet available.

In 2002 job gains and losses were matched in the internationally traded services sector so all the net decrease in employment in 2002 can be accounted for by the manufacturing sector. Over the period from 1997 to 2002, employment in internationally traded services increased by 98.5% from 38,489 to 76,384. In comparison, manufacturing employment increased by only 1% from 225,304 to 227,593. It should be noted, however, that in many larger economies, manufacturing employment has actually been in decline since the beginning of the 1990s. The fact that manufacturing employment in 2002 is similar to its 1997 level reflects positively on the environment for manufacturing in Ireland.

Due to the changeable nature of the global economic environment, it is not possible to predict job gains or losses. However, the Government and the development agencies are undertaking a number of co-ordinated strategies to sustain and promote growth in employment. These include a strong emphasis on the importance of research and development and innovation, promotion of greater competition and accelerated delivery of vital economic infrastructure. The development agencies are also continuing to actively identify and work with high potential start-up businesses and attract new foreign direct investment.